A More Compliant Attitude at the Banks With Consumer Credit Card Debt
It wasn't this way even a year ago - if you owed something major on your credit card, there was very little you could do to negotiate with the bank.
They typically would stand first in line for whatever you had,, and shake you hard for every penny - like in a cartoon.
Perhaps it's been the experience for them of going through a full two years dealing with consumer credit card debt and learning about how low the economy is getting, that's done it.
Today, more than ever before, the banks are ready to sit at the table and talk things over with people who are completely swamped by debt.
Here's what you need to know.
Let's start with the kind of accommodation they're willing to extend.
It happens these days that they are willing to work with your problems by offering to settle everything for less than 50 cents on the dollar.
The problem is, not every deserving candidate for these accommodations actually gets it.
Might a single mother who is disabled and also laid off be a shoo-in? The overworked people in charge of consumer credit card debt and delinquency at the banks don't have the time to actually learn about the merits of each case.
Deserving candidates such as these are routinely charged 30% interest when they are late with a payment.
And they are denied an opportunity to negotiate more reasonable terms.
Most credit card issuers won't actually think of being understanding over your troubles until youactually miss several payments.
The more you get behind in your payments, the more interested they will begin to be in extending an offer.
The first offers you get will be for reduced interest rates, and lower payments for a few months.
If you still fall behind after this, they'll come forward with reduced rates for repayment over many years.
If you can't even swing that, they will finally come to dismiss a part of the debt altogether.
Of course a consumer credit card debt delinquency isn't a cheap thing to you; when you miss one single payment, you can easily lose 100 points on your credit score.
And when you opt for debt settlement, it attacks your credit score even further.
Make sure that you try better options first - try a fixed rate personal loan from an affordable source such as a credit union or a peer to peer lending site; or else, you might find a low rate credit card and have your balance transferred.
You could even opt to transfer your credit card debt to your 401(k) account; the only problem there is that should you lose your job, they'll clean your retirement savings to pay it off.
If your credit card problems are truly temporary - if you absolutely know that your troubles will soon be over because you're expecting better pay or something, you should call your bank for a hardship plan.
They are usually very anxious to have as little delinquent consumer credit card debt as possible; and they will be able to extend a little hardship plan with a low interest rate if you assure them that your situation is temporary.
They typically would stand first in line for whatever you had,, and shake you hard for every penny - like in a cartoon.
Perhaps it's been the experience for them of going through a full two years dealing with consumer credit card debt and learning about how low the economy is getting, that's done it.
Today, more than ever before, the banks are ready to sit at the table and talk things over with people who are completely swamped by debt.
Here's what you need to know.
Let's start with the kind of accommodation they're willing to extend.
It happens these days that they are willing to work with your problems by offering to settle everything for less than 50 cents on the dollar.
The problem is, not every deserving candidate for these accommodations actually gets it.
Might a single mother who is disabled and also laid off be a shoo-in? The overworked people in charge of consumer credit card debt and delinquency at the banks don't have the time to actually learn about the merits of each case.
Deserving candidates such as these are routinely charged 30% interest when they are late with a payment.
And they are denied an opportunity to negotiate more reasonable terms.
Most credit card issuers won't actually think of being understanding over your troubles until youactually miss several payments.
The more you get behind in your payments, the more interested they will begin to be in extending an offer.
The first offers you get will be for reduced interest rates, and lower payments for a few months.
If you still fall behind after this, they'll come forward with reduced rates for repayment over many years.
If you can't even swing that, they will finally come to dismiss a part of the debt altogether.
Of course a consumer credit card debt delinquency isn't a cheap thing to you; when you miss one single payment, you can easily lose 100 points on your credit score.
And when you opt for debt settlement, it attacks your credit score even further.
Make sure that you try better options first - try a fixed rate personal loan from an affordable source such as a credit union or a peer to peer lending site; or else, you might find a low rate credit card and have your balance transferred.
You could even opt to transfer your credit card debt to your 401(k) account; the only problem there is that should you lose your job, they'll clean your retirement savings to pay it off.
If your credit card problems are truly temporary - if you absolutely know that your troubles will soon be over because you're expecting better pay or something, you should call your bank for a hardship plan.
They are usually very anxious to have as little delinquent consumer credit card debt as possible; and they will be able to extend a little hardship plan with a low interest rate if you assure them that your situation is temporary.
